Michigan Probate Inventory Fee Calculator: How to Calculate What You Owe

Michigan's probate inventory fee is mandatory, legally classified as an expense of estate administration, and must be paid before the estate closes. Most executors are blindsided by how it works — it is not a flat fee, and it is not based on the number of assets. It is a sliding-scale calculation under MCL 600.871, applied to the gross value of the estate as of the date of death.

This guide walks through the exact formula, the mortgage deduction rule, and worked examples for common estate sizes.

What the Fee Is Based On

The inventory fee is assessed on the value of all assets that pass through formal probate — real estate, bank accounts, investment accounts, vehicles, personal property, and business interests included in the probate estate. It is due within one year of commencing probate, or before the estate closes, whichever comes first.

One critical rule from the Wolfe-Haddad v. Oakland County appellate decision, codified in 2012 PA 596: any recorded mortgage or lien on real property is deducted from that property's value before the fee is calculated. If a house is worth $300,000 but carries a $200,000 mortgage, only $100,000 of that property contributes to the fee base. If the property is underwater — the mortgage exceeds the market value — it contributes $0. The property value cannot be reduced below zero for fee purposes.

Non-probate assets — life insurance payable to a named beneficiary, joint bank accounts with right of survivorship, transfer-on-death accounts, and real estate transferred via Lady Bird Deed — are excluded from the inventory entirely.

The MCL 600.871 Sliding Scale (2026)

The fee structure is regressive: each additional dollar of estate value is taxed at a lower rate than the one before it. Calculate the fee for your bracket, then add the applicable base:

The fee is rounded to the nearest whole dollar.

Worked Examples

Example 1: Modest estate, $85,000

The estate contains a bank account ($35,000), personal property ($10,000), and a vehicle ($40,000). No real estate.

Inventory value: $85,000

Using the $50,000–$99,999 bracket:

• Base fee: $237.50
• Amount over $50,000: $35,000
• Additional fee: $35,000 × 0.0025 = $87.50
• Total inventory fee: $325.00

Example 2: Estate with mortgaged real estate, $310,000

The estate includes:

• Home fair market value: $275,000, with a $190,000 recorded mortgage
• Brokerage account: $150,000
• Personal property: $20,000
• Vehicle (transferred outside probate via TR-40a): excluded

Inventory value calculation:

• Home: $275,000 − $190,000 = $85,000 (net after mortgage deduction)
• Brokerage: $150,000
• Personal property: $20,000
• Total inventory value: $255,000

Using the $100,000–$499,999 bracket:

• Base fee: $362.50
• Amount over $100,000: $155,000
• Additional fee: $155,000 × 0.00125 = $193.75
• Total inventory fee: $556.25, rounded to $556.00

Example 3: Larger estate, $750,000

After applying the mortgage deduction to real estate, the net probate inventory value is $750,000.

The bracket math works in steps:

• Fee for the first $500,000: $862.50
• Amount over $500,000: $250,000
• Additional fee: At $62.50 per $100,000, that is 2.5 "units" × $62.50 = $156.25 (the statute rounds fractions up to the next $100,000, so 2.5 rounds to 3 units: 3 × $62.50 = $187.50)
• Total inventory fee: $862.50 + $187.50 = $1,050.00

Who Receives the Fee

The inventory fee is paid to the county probate court, not to the personal representative. It is separate from the personal representative's own compensation (which is separately governed by statute as a "reasonable" fee). The inventory fee is a court administrative charge — there is no discretion to waive or reduce it.

The Fee Applies Even in Small Estates Using PC 556

One common misconception: if you use the small estate Petition and Order for Assignment (PC 556) because the net estate value is under the 2026 $53,000 threshold, you still owe the inventory fee. The $25 court filing fee and the inventory fee both apply. Only the Affidavit of Decedent's Successor (PC 598 — for estates with no real property) bypasses court filing fees entirely.

How to Avoid Inflating the Fee Base

Several legitimate strategies reduce the gross inventory value that the fee is applied to:

• Designate beneficiaries on financial accounts. Bank accounts with a payable-on-death (POD) beneficiary and brokerage accounts with a transfer-on-death (TOD) designation pass directly to the named person and are never part of the probate estate.
• Use a Lady Bird Deed for real estate. Michigan recognizes Enhanced Life Estate Deeds, which transfer property automatically at death outside of probate. The property never enters the inventory.
• Apply the full mortgage deduction. Do not skip this step when completing the PC 577 inventory form. Document the recorded lien amount from the Register of Deeds.
• Document all funeral and burial expenses. For estates near the $53,000 small estate threshold, subtracting verified funeral costs from gross value can push the estate below the threshold — eliminating formal probate and its inventory fee entirely.

The Inventory Fee Is Not the Only Cost

The inventory fee is the most visible court charge, but executors should also account for:

• $175 informal probate filing fee
• $12 per Letter of Authority (order 4–6 copies)
• $30 per document recorded at the Register of Deeds
• $25 filing fee if using PC 556 (small estate assignment)

Attorney fees, CPA fees for the MI-1041 fiduciary return, and appraiser costs for valuing real property or business interests are additional.

The Michigan Final Tax & Estate Tax Guide includes a complete inventory fee worksheet — enter your estate values, apply the mortgage deductions, and calculate the exact fee owed to the probate court, alongside every other deadline and cost in the estate settlement sequence.

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